Bihar Gets ₹1 Trillion Urban Development Loan

Bihar is set to receive a substantial financial injection for its urban development initiatives. Housing and Urban Development Corporation (HUDCO) has entered into a preliminary agreement to provide up to ₹1 trillion ($10.50 billion) in loans over the next five years.

This significant financial package will be disbursed in tranches to Bihar's statutory authority. The funds are designated for a wide array of urban infrastructure projects, critically including land acquisition. Furthermore, the memorandum of understanding explicitly enables HUDCO to engage in the planning, development, and financing of entirely new greenfield satellite cities within the state.

The financial terms offered by HUDCO include a remarkably flexible repayment schedule, allowing for up to 25 years for the state to repay the loans. This landmark deal represents one of the largest state-level infrastructure financing agreements in the country, signaling a major step forward for Bihar's urban growth.